Carwow, stylised as carwow, is a UK based platform for buying new and used cars from franchised dealers. It uses the reverse marketplace model to remove the need for buyers to negotiate with car sellers. Users choose the car they would like to buy, along with the various specifications and features, then receive offers direct from dealers. It also provides information to prospective purchasers and gives feedback on rogue dealers and they also review cars via their YouTube page run by reviewer Mat Watson. The company has partnered with the RAC as part of RAC Cars' ‘search, buy, sell’ website. Carwow was founded by James Hind and launched in May 2013. James Hind, when operating Carbuzz, came across the concept from a company which used the reverse tendering concept, called My Best Deal. My Best Deal was the concept of David Paterson, who had formerly been in the motor industry. David Paterson operated at a management level within the motor industry, providing finance and insurance services to clients. Car Wow’s investors include venture firms Balderton Capital, Episode 1 Ventures, Samos Investments and Accel Partners. The company had sold over 20,000 cars valued at £550m by January 2016.
History
The company originally launched in 2010 as car research site carbuzz. It offered aggregated expert reviews, user reviews, statistics, videos and images to help consumers looking to purchase a new car find the best vehicle for their taste, budget and requirements. In May 2013 it re-launched as a car buying platform. The company then raised £1.3m venture capital finance from Balderton Capital, Episode 1 Ventures and Samos Investments, as well as a number of angel investors including Alex Chesterman and Simon Murdoch, in February 2014 to fund growth. Its investors provided a further £4.6m of capital so the company could 'expand the team further, roll out above-the-line advertising campaigns and start exploring new markets'. In August 2015, following a complaint from a competitor, the Advertising Standards Authority found that the competitor "had been providing the same service since 2003" and therefore the ASA "told carwow not to claim that they were the first or only company to offer the advertised service." In January 2016, carwow raised a further £12.5m in a Series B funding round led by Accel Partners. A £6m TV advertising campaign for carwow was launched in December 2015, voiced by actor Michael Gambon. As of January 2016, carwow has one million users.
